2007 (7) TMI 353

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.... The common issue that we are required to adjudicate in both of these appeals is whether or not the CIT(A) was justified in holding that interest received by the assessee on staff loans, on the facts of the case, is taxable as 'income from other sources'. The impugned assessments were framed under s. 143(3) r/w s. 254 of the IT Act, 1961 (hereinafter referred to as 'the Act'), the assessment years....

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....direction that this aspect of the matter should be examined and in case income is found to be incidental to the business of the real estate development, the same may be adjusted against the capital expenditure incurred and only the balance amount to be capitalized. However, when the AO came to be in seisin of the matter again, while he did not give any categorical finding whether or not the same i....

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....s, perused the material on record and duly considered factual matrix of the case as also the applicable legal position. 4. It is important to bear in mind the fact that the present appeal is in the matter of giving effect to the Tribunal's order. All that is to be required to be seen, therefore, is whether or not the directions of the Tribunal have been properly implemented. At this stage, it i....

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....at this stage, and such an action cannot be construed as giving effect to the Tribunal's order properly. In any event, there is no dispute that staff loans are given only to the bona fide employees of the company, and since these employees are working for assessee's business of real estate development, the earning of this interest, which is admittedly not for the motive of earning interest but onl....